Posts Tagged ‘metrics’
Guest Post by Jaap Favier, managing partner of The Small Circle
What is the secret of bars? Why do we happily pay four times as much for beer in a bar as in a store? We pay this brand premium to be with friends. The secret of bars is that they convert our quality time into cash. Like bars, social media are places where friends meet. The best social media programs also convert the consumer’s social time into a brand premium, reaching a return on investment (ROI) up to four times as high as the ROI of a TV commercial.
Vincenzo Cosenza is a new media strategist living in Italy who has over the years, designed some of the industry’s most comprehensive infographics on social media’s global footprint. Recently, he asked if I would write the foreword for his new book, Social Media ROI. And, as I’m a fan of his work, it was an easy decision. As usual however, I asked for permission to share it with you here and his publisher agreed. This is the only place where you can read this in English…
“Not everything that can be counted counts, and not everything that counts can be counted.”
- Albert Einstein
Say hello to my little friends, R.O. & I.
Yes. Return on investment have become the bane of an entire new media industry. However, avoidance is not the answer.
While the question of “what’s the R.O.I. of social media” is difficult to answer, it is necessary as it forces us to dig deeper. The result is maturity.
I’ve received many inbound requests for comments based on a report from Gartner, an IT analyst firm, that estimates as many as 70-percent of social media campaigns will fail in 2011. There are a series of discussions hitting the blogosphere and the Twitterverse exploring this very topic, some elementary and others on the right path. I contacted Gartner earlier this week and the problem is, that this data isn’t new at all. In fact, these discussions are fueled by information originally published in 2008 and in early 2010. Yet another example of the importance of fact-checking in the era of real-time reporting, yes, but, when I paused for a moment, I appreciated the timelessness of this discussion.
The new world of Social Media is among the most actively analyzed, misunderstood, and at the same time, celebrated mediums affecting businesses today. At the very least, it introduces a renewed sense of vigor that is challenging creativity and convention and also inspiring more human connections in the process. Social Media also introduces new channels and methodologies to drive and measure sales, service, and marketing. As such, discerning business executives seek direction to evaluate the opportunity costs associated with new media as well as establish the ROI of engaging in popular networks such as Facebook, Twitter, and YouTube.
Twitter continues to explore and appraise long-term revenue models. For the time being, Twitter’s primary focus is to build and nurture a thriving and indispensable community. Equally critical is the company’s ability to steer engineering and marketing efforts towards developers to empower them to extend, evolve, and enhance the overall Twitter experience for the vast landscape of discerning users as well as those new members who have yet to realize its potential.
Guest post by Katie Delahaye Paine: Follow her on Twitter | Visit her site
There’s been a great deal of discussion of late both here and in other forums about the blurring lines between advertising and editorial and the implications for both relationship building and sales. As a measurement geek (or queen, which ever you prefer) my response is generally – who cares what you call it, focus on the results. Is what your doing selling stuff, saving money, or making you more efficient?
This isn’t an attempt at sensationalism, this is a clear message for all businesses, in every market – Engage or die! If you don’t, you’re competition will. Those who engage with customers and markets will cultivate loyalty in ways never before possible. Traditional marketers will lose, unless they embrace new media.
The key however, is finding ways to measure everything in ways that mean something at every level of corporate communications.
Brian Solis is principal at Altimeter Group, a research firm focused on disruptive technology. A digital analyst, sociologist, and futurist, Solis has studied and influenced the effects of emerging technology on business, marketing, and culture. Solis is also globally recognized as one of the most prominent thought leaders and published authors in new media. His new book, What's the Future of Business (WTF), explores the landscape of connected consumerism and how business and customer relationships unfold and flourish in four distinct moments of truth. His previous book, The End of Business as Usual, explores the emergence of Generation-C, a new generation of customers and employees and how businesses must adapt to reach them. Prior to End of Business, Solis released Engage, which is regarded as the industry reference guide for businesses to market, sell and service in the social web.